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SMAC the Internet: App Economy & the Indian IT/ITeS Industry Dr. Anupam Khanna. Chief Economist Indian Telecoms Last Mile Conference ICRIER, New Delhi, March 7, 2014
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Page 1: App Economy & The Indian IT/ITeS Industry

SMAC the Internet:

App Economy & the Indian IT/ITeS Industry

Dr. Anupam Khanna. Chief Economist

Indian Telecoms Last Mile Conference

ICRIER, New Delhi, March 7, 2014

Page 2: App Economy & The Indian IT/ITeS Industry

About NASSCOM

• Policy Advocacy – Partnership with the Government

• Industry Development – Research, Events, Forums, Market development

• Enabling Environment – Entrepreneurship, Innovation, Resource building, Security

initiatives, Infrastructure

• Global Trade Development – Policy advocacy, Market development, International

Partnership, WTO/Bilateral engagements

• Sustainability - CSR initiatives, Gender inclusivity, Driving Inclusive Growth, Green IT

Initiatives

Represents IT, BPM, Products, ER&D Industry

Over 1,300 members – Includes Indian firms, MNCs and GIC units

Page 3: App Economy & The Indian IT/ITeS Industry

IT-BPM Industry – resilient, growing, evolving

50 59

69 76 86

24

29

32 32

32

FY2010 FY2011 FY2012 FY2013 FY2014E

Domestic Exports

108

118

88

74

100

E: Estimate

Source: NASSCOM

IT-BPM revenue break-up

USD billion

• Industry expected to aggregate USD 118

billion in FY14. Growth reflects variable

impact of currency

• 1.7X growth in the last 5 years – USD 50

billion added; CAGR of 12.4 per cent in

last 5 years

• Software and services revenue in FY14-

USD 105 Billion

• Revenues from SMAC: 5-10 per cent of

revenues

• Reinforces India’s position as the one

country from where you can do

everything

3

Page 4: App Economy & The Indian IT/ITeS Industry

SCALE & MATURITY

- 25+ years of outsourcing

- 5000+ companies, 750+ MNCs

- 580 ODCs in 75 countries

UNLIMITED TALENT

- Annual tech talent output: 1Mn

- Established training engine: 2-3% of Industry revenues spent on training

COMPETITIVE

- 60-70% more cost efficient than source countries

- 15-20% lower than next lowest offshoring destination

CUSTOMER CENTRIC

- 30-32% revenues from verticalised BPM services

- Domain experts:12% Consultative selling

STRONG ECOSYSTEM

- Largest no delivery locations: 50

- Training & certification

- Secure environment

4 10-Mar-14

Why India is a preferred destination

Page 5: App Economy & The Indian IT/ITeS Industry

IT Services BPM Engineering

R&D

Internet &

eCommerce

Software

Products

• ADM

• Infrastructure

outsourcing

• Integration

• Software

testing

• OSPD

• IT strategy &

consulting

Services portfolio continually expanding

• Customer

support

• Transaction

processing

• Knowledge,

legal services

• Data

management

• Analytics

• CAD/CAM

• Embedded

design

• Design and

R&D

• Product

engineering

• Enterprise

solutions

• Platforms

• Apps

• SAAS

• B2C products

• eCommerce

platforms

• Online

marketing

• Social media

technology

and solutions

• Content and

search

Only country in the world with the capability to provide complete end to

end services in IT, BPM, Products and ER&D

Source: NASSCOM

Page 6: App Economy & The Indian IT/ITeS Industry

IT-BPM Exports Industry Structure, FY2012

Industry represents a heterogeneous mix of

Indian and multinational firms

Source: NASSCOM

67-70%

12-14%

16-18%

ISP

MNC

GIC

IT-BPM

73-75%

IT Services

BPM

ER&D & Software

Products

ISP: Indian Service Provider, MNC: Multinational Company, GIC: Global In-house Centre

Category Players

(nos.)

% of Export

Revenues

% of Total

Employees

Large -

sized

11 47-50%

> USD 1 billion

~35-38%

Mid-sized 85-100 32-35%

USD 100 mn- 1

bn

~28-30%

Emerging ~ 450-

600

9-10%

USD 10 million-

100 million

~15-20%

Small /

Start Ups

> 4,000 9-10%

<=USD 10 million

~15-18%

Page 7: App Economy & The Indian IT/ITeS Industry

New emerging centres

10-Mar-14 8

Ahmedabad

Surat

Bhopal

Bhubaneswar

Chandigarh

Indore

Jaipur Lucknow

Madurai

Mangalore

Nagpur

Thiruvananthapuram

Vadodara

Visakhapatnam

Gwalior

Kanpur

Dehradun

Ranchi

Shimla

Srinagar

Goa

Gangtok

Raipur

Guwahati Allahabad

Varanasi

Siliguri

Pondicherry

Nashik

Aurangabad

Mysore

Salem Coimbatore

Kochi Tiruchirapalli

Hubli-Dharwar

Vijayawada

Ludhiana

Durgapur

Patna

Tier-2 Cities

Tier-3 Cities

Advantages offered by Tier–2/3 Cities

Tier–2/3 cities in India

• Availability of Knowledge Pool

• Lower Operating Cost

• Government Support and regulation

• Developing Infrastructure

Source: NASSCOM; SEZ, India; KPMG Analysis; ITP Division, MoEA, Govt. of India

IT–BPM SEZ Unit Growth*

*Formal Approvals

303

532 589

2008 2010 2012

Tier–2/3 cities account for around

30 per cent of all operational IT SEZs

Page 8: App Economy & The Indian IT/ITeS Industry

Emerging verticals - main growth driver at ~12 per cent

Vertical-wise* Break-up

40.9% 40.8%

18.7% 18.4%

15.9% 16.0%

9.8% 10.0%

4.6% 4.7% 3.2% 3.2%

3.2% 3.3% 2.0% 2.0% 1.6% 1.6%

FY2012 FY2013E

BFSI Hi-tech/Telecom Manufacturing

Retail Healthcare T&T

Const & Utilities MPE Other

10%

8%

10.9%

E: Estimate; *Excludes hardware exports

T&T: Travel & Transportation, MPE: Media, Publishing & Entertainment; Others: Include Government, Education

Source: NASSCOM

100%

(USD billion) = 68.8 75.8

• Mature outsourcing verticals - BFSI,

manufacturing and telecom

contributed over 75 per cent of

exports

• Emerging verticals retail, healthcare

and utilities- 2X growth from mature

verticals

• BFSI at 10 per cent growth slightly

below industry, pipeline strong

~12%

Emerging

Verticals

Key Trends

Page 9: App Economy & The Indian IT/ITeS Industry

Source: NASSCOM

Entrepreneurial startups infusing energy and

innovation

~500 ~400+

eCommerce Education

250+

MPE,

Retail,Travel &

Hospitality

120-150

Telecom, Real

Estate

Manufacturing

100+

Agriculture,BFSI,

Energy, Govt,

Healthcare

Diverse start-up landscape (Number of firms)

Collaboration between large companies and startups

Emerging players

~1,000-1,200

Small sized

~15,000 players

Increase in start-ups focusing on solutions around SMAC

~150-200 ~750-800 ~800-900

Hardware and

Devices Internet/Web SMAC

• ~3X growth in new firms set up post 2005

• Bengaluru – one of the Top 20 startup ecosystems

globally

• Verticals- Education & retail gained significant

traction

Page 10: App Economy & The Indian IT/ITeS Industry

The digital wave - defining India, defining business

The SMAC Opportunity • SMAC reshaping businesses;

consumers and all traditional

approaches- the foundation for

a Digital enterprise

• Consumerization of IT driving

growth

• Start ups setting the pace in

SMAC solutions

INDIA: FAST GROWING DIGITAL ECONOMY

Mobile

130 million

920 million telecom

subscribers

40 million smartphones

213 million internet users

India 3rd fastest growing

app market

300 million+ app

downloads

INR300 crore+ app

market

Ecommerce revenues in

2013- USD 13 billion

4 year CAGR growth- 36

per cent

2013 2016P

Social 16.9 34

Mobility 0.8 2.1

Analytics 18.4 44.2

Cloud 128 207

USD billion

Source: Gartner, IAMAI, IMRB, KPMG, McKinsey, TRAI, Secondary sources, NASSCOM

Page 11: App Economy & The Indian IT/ITeS Industry

“SMAC” – Social Media, Mobility, Analytics and Cloud

reshaping the future of the Indian IT Industry

Impact is highly evident

• Create a new digital

operating model and

transformation to a

permeable enterprise

• Engagement with a

growing digital ecosystem

• Empower enterprises to

embrace emerging

technology trends and to

benefit from the value

expectations of customers

• Innovative thinking in

business and enterprise

architectures

SMAC, is becoming a business reality

Social, mobility, analytics and cloud are reshaping

the business, the consumers and all traditional

approaches, Indian Industry has seen till now

Movement towards the next orbit of innovation with

consumerization of IT

Opportunity to move to higher-margin business

by offering creative solutions

Help businesses grow dynamically instead of

increasingly cutting margins for typical IT contracts

Launching luxury product lines that comprise the

SMAC suite of technologies to go the next level

Huge potential for revenue generation

IDC Indian IT vendors expected to generate over

$225 billion in SMAC related revenue by 2020

Drivers/ factors contributing to the changing landscape of Technology

Transformation

Remodelling business processes

through harmonizing technology

advancement

Client- specific outcomes

A meaningful change in the business

requirements i.e., end-to-end solutions

New paradigm for business

Efficiency, Enhanced customer

experience, Reduced time to market,

Connectivity, IT Consumerization

Journey to the Cloud continues; enthusiasm for Big Data, Mobility and Social Analytics also remains strong

Mobile payments Smart cities Connected Health Pivot merchandising

mBanking mHealth Smart Buildings mGovernance Platform-as-a-Service

Page 12: App Economy & The Indian IT/ITeS Industry

SMAC: Driving incremental growth

12

SOCIAL

• For a global communications and high-tech firm • Service provider designed a social networking capability,

based on Salesforce.com Chatter platform

Benefits

• Better collaboration, easier access to sales-related content in real time

• Platform to share best practices; provided direct feedback mechanism

• Access to enhanced peer-to-peer networking and collaboration

• More client-facing time and improved reuse of existing collateral

• Improved performance and sales training programs

MOBILITY • For a telecom service provider • Mobile wallet service for India market where banks and similar

institutions have lesser penetration than mobile

Benefits • Consumers can conduct transactions at various eCommerce

portals • Pay bills, recharge accounts and shop at over 7,000 merchant

outlets • Conduct transactions online through multiple channels (mobiles,

IVR S, ATMs, POS)

ANALYTICS • For a national bank • Create a credit card offering with rewards program to attract the

young, professional demographic • Service provider applied analytics on big data from sources (call

centre, customer service emails, social media) to better understand customer profile

Benefits • Bank developed new rewards program designed to appeal to

upwardly mobile professionals • Provided information for targeted promotions, incl. strategically

placed social messaging, monitoring

CLOUD

• For a rapidly growing chain of hospitals in India • All eight healthcare facilities connected by a private cloud Benefits • Enabled remote patient care - doctors remotely diagnose patients

especially those in trauma without rushing to the hospital • Timely diagnosis helping in getting immediate treatment to the

patient

Page 13: App Economy & The Indian IT/ITeS Industry

Enterprise Mobility – New strategic

imperatives

On demand channel for real time communication & connection between enterprises

and customers in digital world

Works with 2 strategic imperatives

Enterprises to improve asset productivity, profit margins, round the clock

decision making, employee satisfaction and enhance brand presence

Empower the customers through engaging experiences and improved

services quality through point of sale reach

To a Retailer, the same

device that navigates a

customer into a store can

redirect the final sale to

the competition

To a Bank/ FI, the mobile

phone solution is a new

wallet that could make the

credit card obsolete

To a Sales organization,

mobile computing keeps

salespeople out in the

field talking to customers

To a Healthcare firm, a

patient's vitals and

behaviours may be

constantly monitored, to

increase the effectiveness

of treatment

Enterprise Mobility – A profitable

market

Estimated to reach around USD 140 bn by 2020, a CAGR of approx 15%

North America, expected to remain the largest market

APAC expected to grow the fastest at ~21%

Existing spend of less than 5% on EM, expected to grow to 10-12% by 2020

Enterprise Mobility – Growing

opportunities for India

India, expected to be a big market; capabilities need to be aligned in the right direction

Players need to build capabilities quickly – as market consolidates

Traditional IT players to add application development capabilities to offer more

holistic end-to-end solutions

Need for consolidation to implement EM solutions across entire ecosystem

EM going forward, to be viewed from holistic approach of cloud+ social+ mobile +

location powered with big data to explore new business opportunities

Mobility is setting new imperatives for operational efficiency

and customer engagement

Enterprise Mobility- Overview & Trends

Page 14: App Economy & The Indian IT/ITeS Industry

Indian providers are creating new business streams, enabling

consumerization and enhancing process through mobility

Enterprise Mobility

New Business Streams

Consumerization

Process Enhancement

• Enhanced customer service delivery model

• Reaching customers at the point of sale through

solutions like m-payments, m- commerce,

m-retail, m- banking, mhealth and similar apps

• Enables faster decisions on “GO”

• Making available Real time data from Enterprise

to Edge e.g., Sales force, Field service, CRM

• Improves Sales cycle, Enterprise resource

planning, Business intelligence etc

• Mobile enabled business processes

• Creation of new revenue streams around

mobile technology e.g., Surveillance and

monitoring, e-governance, Patient Care,

Supply Chain Management solutions

As mobile technologies become more mature and pervasive throughout an industry, there is a gravitation away from

standalone solutions focused on specific functions to more broad and comprehensive innovative solutions

mBanking, mHealth, mRetail and mPayment have become part of the daily vocabulary of consumers and enterprises

EM in Retail

Shopper stop- customer service through

connecting devices

Pantaloon- Store operations effectiveness

EM in BFSI

CanvasM technologies- Enabling wider reach of

banking to the remote areas through Saral Dhan

EM in Healthcare

Attinad Software- offering first of its kind mobile patient

management solution for cancer

EM in Oil & Gas Industry

Attinad Software- Mobile version of the electronic permit to

work for better performance and control on the process

Enterprise Mobility- Impact

Page 15: App Economy & The Indian IT/ITeS Industry

Big data- a new era in data exploration and utilization

Uncovers hidden patterns, unknown correlations and other useful information

Rising impact on decision-making as analysis of data is as essential as business

Unfold 4 main broad objectives

Derive meaningful insights for innovative decision-making

Improve efficiency in business operations by predictive analysis through usage

and interpretation of voluminous data

Competitive advantages over rival organizations and result in business

benefits, such as more effective marketing and increased revenues

Customer centric outcomes through uncovering and evaluating customers

behaviour and buying patterns

Estimated to grow at 45% annually to reach ~USD 25 billion by 2015

Indian Big Data industry expected to grow from ~USD 200 million in 2012 to

~USD 1.0 billion in 2015 at a CAGR of over 83%

North America, expected to provide the major opportunity

Emergence of niche start-ups and technological developments fostering growth

Big data/ Analytics: Creating actionable and predictive

analytics from diverse data-sets

• Innovative product/service development

• Existing product/service improvement

• Cross-selling and up-selling

• Innovative marketing

• Advertising effectiveness measurement

Operations

Product development

Supply Chain

Marketing

Consumers

• Target segment identification

• Buying patterns identification

• Customer experience & loyalty management

• Social media management

• Productivity improvement

• Process improvement

• Streamlining operations

• Supply chain interventions

• Inventory management

Organizations of all shapes and sizes are in the midst of yet another technology-led evolution through Big data analytics Source: CRISIL GR&A analysis. NASSCOM, Primary research

Big data/ Analytics- Overview & Trends

Page 16: App Economy & The Indian IT/ITeS Industry

Source: Industry release, NASSCOM 16

Achieving

operational

efficiencies

A key measure to

outperform the peers

Leveraging

business

opportunities

1

2

3

BIG DATA

• As per Mckinsey report, a retailer embracing big data has

the potential to increase its operating margin by more than

60%. Savvy retailers and e-commerce companies are

turning to big data analytics to increase sales, better target

customers, improve reach and gain competitive advantage

• Other Industries include financial services and insurance

where usage of big data analytics is evident

• Several IT services as well BPM

provides such as Infosys, Wipro,

WNS, Genpact etc are offering Big

Data services e.g., forecasting the

market mood, offering market

analytics to draw the vital picture of

business landscape with higher color

of returns and consumer satisfaction

• A study from IBM shows that

companies which excel at effective

utilization of data and have more

mature business analytics and

optimisation, can experience 20

times more profit growth and 30%

higher return on invested capital

Looking at the current and potential benefits of Big Data analytics, service providers aims to expand into

newer areas and expand data management and analytics services

Indian providers are adopting advanced analytics for distilling

better intelligence from customer data for driving sales

Big data/ Analytics- Impact

Healthcare

Adoption of Big Data analytics lead to effective analysis of

patient stats

Financial Services

Increased adoption of Big Data analytics, to reduce risk and

uncover new market opportunities

Retail

Help retailers understand customer buying patterns , behaviours and maintain

optimal stock levels

Manufacturing

Adoption for telemetric data which is used for communication,

obtain usage patterns & navigation services

Page 17: App Economy & The Indian IT/ITeS Industry

Cloud adoption leading to improvement in cost along with

virtualization through dynamic abstraction of IT services

Services

• Cloud consulting, system integration and cloud

system operations capabilities

• Migration and integration of specific workloads onto

the cloud and related process & integration design

Software

(incldg.

Products)

• Shift from licensed to subscription based software

deployment models

• Cloud enablement and software product

development for ISVs

• Transition from basic service-oriented architecture to

the way software is delivered (software as a service).

Hardware • IaaS and cloud platform models

• Virtualized and cloud ready hardware as serve most

on-premise needs

Impact is highly evident

• Business processes: BPM solutions are

modified to self-service, platform models

enabled by cloud, and automated service

delivery mechanisms offering value add to

clients through pay-per-use-model, leveraging

cloud as Business Process-as-a-Service

• CADM/ Application Development: Application

software delivered as a service on cloud is

gaining prominence with the advent of

innovative solutions offerings with suitable

pricing models

• ER&D: Virtualization has enabled efficient use

of infrastructure/ engineering elements with

adoption of Infrastructure as a service,

computing platforms, data centers etc

Cloud penetration in hardware will show

a major shift from 2012 (8% - 10%) to

2016 (22% - 24%)

IDC predicts 2013 will be a year of big

jumps in SMEs business cloud use.

Ecosystems of solutions that cluster

around PaaS — will appear as "the most

valuable real estate in the cloud."

Testing • Software testing services and management for

complex testing environments and those requiring

scalable test-beds

CADM

• Applications development and management with

focus on highly virtualized services

• Migration and enablement of traditional applications

in cloud, custom development for cloud packages

and applications maintenance

Market is expected to reach $650-$700B globally and $15-$18B domestic by 2020

Cloud Computing- Changing Paradigm & Trends

NEW

SERVICES

Page 18: App Economy & The Indian IT/ITeS Industry

Productizing services and monetizing existing CIS

services- enabled by cloud adoption

Source: Deloitte Analysis, Industry Press, Company websites- ATOS & TCS

Illustrative Use Case: Enhancement of CIS through focus on

core capabilities and rely on third parties for elements that

do not constitute a competitive advantage

Illustrative Use Case: A new business model, enabled

by cloud

Lean Mobile

branches (Smart

Handsets) Account

holders

Business

Corres-

pondents

VM VM VM

TCS BαNCS

on Cloud

Action Result • Core services like term

deposits, loans and overdrafts,

cash credits, agricultural credits

and subsidies are provided to

banks at a low and predictable

monthly rate

• Trade finance, remittance and

foreign exchange services are

also included

• Cooperative banks like Andhra

Grameen Vikas Bank,

Uttaranchal Grameen Bank and

Purvanchal Grameen Bank are

among adopters

• Solution called TCS BαNCS

adopted as a core banking

solution with oriented

architecture, making it

amenable to the cloud

• C-EDGE is a joint venture

between TCS and SBI to

offer TCS’s core banking

solution BαNCS as a service

to Regional Rural Banks

through handhelds acting as

point-of-sales terminals

• Select functionalities of the

BαNCS provided on a

monthly charge basis

Cloud Computing- Impact (case examples)

Enterprise’s core business processes run across different

clouds, requiring complex business transactions to

connect to and span multiple and heterogeneous clouds.

There is a need for a cloud-integration and delivery model

that takes into account orchestration across clouds

• Ability to integrate applications built on various technologies

(Java, .NET…) and collaboration between different protocols

• Managing transactions in a business process across different

cloud environments

• Workload management and fail-over between Clouds. As cloud

environments become more complex, customers can manage

their cloud workloads better in an orchestrated environment

chart and text to

Page 19: App Economy & The Indian IT/ITeS Industry

Social media analytics- New way to integrate, analyze

and enable clients to act

Social Analytics– segmenting big unstructured data (Social Media) on different

dimensions

Offers differentiated ability of gauging customer opinion to support marketing

objectives and customer service activities

Translate into a revenue mechanism that affects the profitability of the business

Bring together elements for thought process based on the behaviour and buying

trends of customers

Not a standalone activity, rather a part of digital marketing strategy

Emphasis on 4 main imperatives- Listen, Respond, Engage and Nimble

Influencer and follower model, positive as well as negative sentiments

Marketing campaigns and strategies link to the ROI

Build valuable leads of potential customers

Intelligently identify USPs for better customer connection

An explosive growth opportunity for Enterprise Social Software with the market

exceeding $6.4 billion by 2016

According to Forrester Research, spending on social business software is expected to

grow at a rate of 61 percent through 2016

Social Media Analytics- Overview & Trends

Brand Perception:

• To know what consumers are

talking about a brand or product

or services

• It is about analyzing the new

trends in consumer preferences

and taking feedbacks to improve

on brand image and service

offerings

Exploring Opportunities:

• Social media provides valuable

data for business, along with a

medium for conversation

• SMA tools enables to spot

trends, opportunities and get

insights, and to act by

participating in conversations

that are increasing ROI and

operational efficiencies

Page 20: App Economy & The Indian IT/ITeS Industry

Current trends and future outlook

Mobile subscribers were 1.6 million in 2000 and grew to 900 million by 2012, of

which more than 44 million estimated to be smartphones

With improved spectrum pricing and management, growth of mobile broadband

service is expected to continue

3G and 4G adoption projected to increase by 31% between 2013 and 2017

Mobile internet usage surpassed desktop Internet usage in May 2012.

IAMAI estimated the number of mobile Internet users to be 87.1 mn as of

December 2012, with a large chunk of this number accessing apps on a daily basis

2nd largest mobile market and 8th fastest growing smartphone market with a

189% growth in 2012

Smartphone penetration is 4 percent and is expected to grow to 25 percent by

2015

Indian App /

mobile Economy-

facts

20

Represents a quarter of all mobile connections in Asia Pacifica with 900 million

mobile connections - expected to rise to 1.16 billion by 2017

Page 21: App Economy & The Indian IT/ITeS Industry

Classification of applications - basic,

generic and industry specific

Industry Specific Applications

Solutions that are domain and company specific, often custom built or highly customized for an enterprise

Generic Applications

Solutions which have applications across industries

Basic Applications

Solutions that extend basic

functionalities to the mobile

environment

Source: Deloitte Analysis

• Email

• Messenger

• Calendar

• Tasks

• Contacts

Retail

• Mobile

Commerce

• Point of Sale

• Coupons and

Offers

Media

• TV

Everywhere

• Social

Television

• Interactive

E-books

Healthcare

• Clinical Trials

• Salesforce

Automation

• Tablet Electronic

Records

Hospitality

• Digital

Concierge

• In-Room

Automation

• Customer

Service

Transportation

• Navigation /

Telematics

• Airline Mobile

Ticketing

• Automotive

Apps

Telco

• Content

Delivery

• App Stores

• Messaging

Financial Services

• Mobile Banking

• Loyalty Programs

• Financial Trading

Systems

Public Sector

• Government to

Citizen

• Smart Parking

• Education /

Advocacy

B2E - Enterprise Resource Management

B2B - Supply Chain Management

B2C - Customer Relationship Management

M2M - Location Based Services

1 2

3

Page 22: App Economy & The Indian IT/ITeS Industry

Mobile Ecosystem in India – Economic

Impact

5.3% of GDP in 2012

Social Impact

in Priority Sectors

Direct employment for

730,000 jobs and

indirect - 2 million jobs

Productivity gains

Enabling an

ecosystem of mobile

product and service

providers

1 2 3

4 5

22

Source – GSMA: Mobile Economy report India 2013

Page 23: App Economy & The Indian IT/ITeS Industry

Healthcare: Improving accessibility & efficiency

Increasing accessibility of health

services in remote areas

Increasing awareness about health-

related issues

Increase in efficiency by reducing

burden on doctors and optimising

resources

Scalable and cost effective health

services

Telemedicine

Electronic Medical

Record and Hospital

Automation

Automation of

Peripheral Healthcare

Services

Picture Archiving and

Communication System

Managed Healthcare

Services

Mobile Health Clinics

Key

technology

solutions

for

Healthcare

Source: Evalueserve Analysis

Page 24: App Economy & The Indian IT/ITeS Industry

Impact On Key Challenges -

HEALTHCARE

24

Coverage / Access

• Saves travel time and improves retention rates for healthcare staff

• Remote diagnostic/treatment support

• Examples - Airtel’s Mediphone service, Apollo Telemedicine Networking Foundation, Tata DOCOMO ‘Sparsh

Communicable diseases

• Public health surveillance

• Patient monitoring / compliance

• Examples - Operation ASHA

Maternal and child healthcare

• Reduce mortality rates

• Educating and informing community workers who attend births and advise expecting mothers

• Examples - CommCare mobile app—powered by Dimagi, Vodafone’s e-Mamta mother and child tracking initiative

Page 25: App Economy & The Indian IT/ITeS Industry

Impact On Key Challenges –

EDUCATION

25

Extending access to underprivileged communities

• Learning tools to empower teachers with new, engaging content - Vodafone Foundation with Pratham Education Foundation to deploy the ‘Learning with Vodafone’ Solution

• Self learning solutions - “hole in the wall”

Affordable education

• Providing content via the mobile channel

• Examples - Tata DOCOMO’s Tutor on Mobile service

Improved quality of education

• Mobile can offer certification opportunities,

• Improve employment prospects in places where college education leaves graduates with only low quality skills

Page 26: App Economy & The Indian IT/ITeS Industry

Banking and Financial Services:

Increasing security and convenience for end users

• Mobile and Internet Banking lower the requirement of cash

handling

• Specialised security software ensure data privacy and security

Improving Security for both the User and the Provider

• Ease of information access and issue resolution through call

centers

• Convenience due to higher responsiveness of online and

mobile banking

Improving Customer Service

• Enhanced efficiency in basic processes reduces number of

trips to a branch

• User-friendly mobile/online payment solutions

Increasing Agility in Processes

• Enhanced customer convenience due to integration of

applications

• Ability to demand customised solutions on basis of the past

track record

Integration of Different Services and Processes

Internet Banking

Mobile Bank

Branches

ATMs

SMS/Mobile Banking

Phone Banking

Benefit of IT-BPO

Products and

Services

on

Banking and

Financial

Services

Customer Care

Services

Core Banking

Solutions

Source: Evalueserve Analysis

Page 27: App Economy & The Indian IT/ITeS Industry

27

• Licenses for semi-closed wallet being issued to non-bank entities like Bharti Airtel and ITZ Cash

• RBI considering a dedicated clearing house for m-payments

• Considerations underway on m-pin based m-banking POS, mobile linked no-frills accounts using biometric authentication, etc.

• Mobile payment service providers (like Obopay) evangelizing the need for mobile money for banks like Yes Bank, Union Bank of India, etc.

• Following the success stories like M-PESA in Kenya and M-KESHO in Africa, M-PESA has been introduced in India by Vodafone and HDFC Bank

• Mobile-based branchless banking platforms are being adopted by the banks, e.g. A Little World platform by SBI

• Large databases of information are available enabling automation of services like IVR

IT as

an

Enabler

Industry as

an Enabler

Government

as an

Enabler

Mobile

Banking India’s mobile banking customer

base was 0.887 million in Sep ‘10

RBI guidelines have restricted the

mobile banking transactions to INR

2,500 per transaction

Mobile Banking

Note: 1; IMG- Inter Ministerial Group,, MNO – Mobile Network Operators, POS – Point of Sale, IVR -Interactive voice response; SWIFT -

Society for Worldwide Interbank Financial Telecommunication

Source: ASSOCHAM Report Mobile Value Added Services (MVAS) 2010; Zinnov Analysis

Page 28: App Economy & The Indian IT/ITeS Industry

Impact On Key Challenges –

FINANCIAL SERVICES

28

Increase access to financial services

• Access to poor

• Mobile micro-savings accounts

Government initiatives enhancing benefits for citizens

• Means of operating a secure, low-cost, time-efficient welfare disbursement system

• Facilitating e-Government and supporting disaster relief efforts

Potential impact and requirements for support

• Potential to serve 250 million people by 2020,

• Raising the adult financial inclusion rate to 65 percent

Page 29: App Economy & The Indian IT/ITeS Industry

29

Retail Industry Growth Drivers

Increasing maturity of unorganized sector

Rising number of malls and supermarkets

New players entering the market, existing

players rapidly expanding

Innovative store formats: community

shopping, wedding malls, etc.

Private brands/labels by big retailers

Network all offices and outlets of the

company

Provide remote training to employees

Enable an efficient supply chain network

Improve customer service

Address security at all levels

Finance & accounting and HR

Note: 1NCR, Mumbai, Hyderabad, Pune, Bangalore, Kolkata and Chennai

Source: Zinnov Analysis

Ensure faster and efficient transaction

Te

ch

no

log

y

Dri

ve

rs

Business Trends Need for Technology

Companies establishing presence on the

internet/online platform

Page 30: App Economy & The Indian IT/ITeS Industry

Consumer Trends

30

Payments - Monetization of apps becoming easy

Information - Easiest channel to disseminate information in short time –

eg Mobond

Social - Social connectivity through mobile app targeted as young

population

Local - Ability to reach remote and isolated areas - massive jump in

number of smartphone users in tier-3/tier-4 towns in India

Page 31: App Economy & The Indian IT/ITeS Industry

Policy challenges

31

Robust spectrum management

Ensuring Universal Service Fund approach

Aligning Radio Frequency exposure limits to global norms

Consumer

Developer

Telecom

companies

Employers

OEMs

Ecosystem - Stakeholders

Policy Framework

Page 32: App Economy & The Indian IT/ITeS Industry

Hypermobility…but only for some ??

Page 33: App Economy & The Indian IT/ITeS Industry

Inclusive ITeS Innovation Examples

• Mobile Financial Services: EKO

• Mobile Phones for Data and Text

• Rural Development: Ekgaon , Nano Ganesh

• Health Diagnostics (Avoidable Blindness): 3nethra

• Public Health (Maternal & Child Health): e-Mamata

• Travel Services: iXiGO

• Unique Identification System: Aadhar

Page 34: App Economy & The Indian IT/ITeS Industry

34

Blindness A Global threat

Problem

Challenges

• Blindness is a Global threat to health and productivity • Of the 39 Mn blind people in the world 12 Mn live in India • Africa has approximately 19% of the world’s blindness • 80% blindness caused due to –

• Cataract / Glaucoma / Refractive Errors/ Diabetic Retinopathy/AMD • Of the 60 Mn Diabetic patients in India 20% will develop diabetic retinopathy

• Scalability – Low Patient-to-Ophthalmologist ratio; 1:70000 in India • Affordability – Expensive devices which require trained ophthalmologist • Rural reach – Only 7-10% of the people are screened on time • Awareness – Lack of awareness about detecting eye disorders early

80% of blindness can be prevented if pre-screened

An Effective Pre-screening tool is the Unmet need!

Page 35: App Economy & The Indian IT/ITeS Industry

Forus 3nethra

A Pre-screening Ophthalmology Device

Cornea Imaging

Retina Imaging

3nethra is an affordable multi-functional portable ophthalmic imaging system

Refractometer

Page 36: App Economy & The Indian IT/ITeS Industry

3nethra ForCare

Cloud based Tele-ophthalmology capability

Page 37: App Economy & The Indian IT/ITeS Industry

Gleanings from Recent Academic Research

• How is Mobile Internet Different? (Ghose et al)

• Ranking Effects Higher: Suggests Higher Cognition Load

• Higher Benefits from Browsing Geographically Closer Markets

• More Recent Posts More Likely to be Clicked

• Mobile E-Commerce (Einav et al)

• Mobile Money Services (Gutierrez & Choi)

• Possible at widely different stages of Financial Development

• Requires a Vibrant & Competitive Telecommunications Sector

• Regulatory Framework Need Not be Very Sophisticated

• Some Critical elements in Legal Framework

• Electronic Signature Law Support for Retail Payment Services

37 10-Mar-14


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